An explanation on the Propel website said the two companies want to offer “fast and flexible” access, with Propel looking to boost its reach across the U.K.
Barclays’ network of 1,100 banks will connect with Propel’s Propeller online portal, which gives quick credit decisions up to 100,000 pounds ($128,530) for SMBs banking with Barclays, the release stated. That will let businesses make purchases up to 2 million pounds ($2.6 million), with quickly released funds, often in less than a day.
According to Propel, the partnership will help SMBs access more new assets, which can help them be more competitive in doing business. That can boost cash flow through spreading asset costs out over time, and it will help to unlock potential through spending elsewhere as there’s no more spending on assets up front. And, it will allow for better preservation of existing credit lines, including bank overdrafts and loans.
Asset finance is still a vital source for SMBs, particularly those that need a wide range of equipment to sustain business activity, investments and growth, which is why the partnership came about, according to the release.
Hannah Bernard, head of Barclays Business Banking, said in the release that the impact of the pandemic is slowly receding for many SMBs, which are now looking to “diversify and strengthen their enterprise,” through new types of assets to boost business.
“By partnering with Propel, we’re offering all our clients access to a market leading product which will give them even more flexibility when picking the right kind of finance to support their business,” she said, according to the release. “It’s vital for the recovery of the U.K. economy that we continue to boost the confidence of small businesses, and our team of relationship managers are here to help them invest for the future.”
In April, Barclays began a program to support large U.K. corporates affected by the pandemic and not eligible for the programs available for SMBs.